Mylan To Pay $65M To Bury Medicaid Inflation Claims

Law360, New York (January 3, 2011, 6:36 PM EST) -- Mylan Inc. will pay $65 million to settle allegations brought by the state of Texas that the drugmaker inflated Medicaid reimbursements by concealing discounts it provided to pharmacies in violation of the False Claims Act.

Announced Thursday, the settlement will hand Texas $23 million and the federal government $42 million, and comes as part of a nearly decade-long multidistrict litigation in the U.S. District Court for the District of Massachusetts.

Initiated in 2001 by relator Ven-A-Care of the Florida Keys Inc., the qui tam suits accused...